ninemsn > Money > News and analysis
OzJet sold to HeavyLift Cargo Airlines
Australian aviation and motor racing identity Paul Stoddart has sold his niche charter airline, OzJet, to HeavyLift Cargo Airlines.
OzJet said Sydney-based HeavyLift had acquired OzJet and its fleet of four Boeing 737 aircraft "in a multi-million dollar deal".
Mr Stoddart said he was pleased that OzJet would maintain its progress in becoming a successful schedule and specialist charter airline.
HeavyLift's Nick Leach, who is also the newly appointed chairman of OzJet, said the acquisition came at a challenging time for the industry.
"These are challenging times in the aviation sector, but this development will strengthen both companies," Mr Leach said.
He said he looked forward to the synergies that might be achieved with HeavyLift's existing fleet of Boeing 727 cargo aircraft.
OzJet was launched as an all-business class airline in 2005, initially flying between Sydney and Melbourne.
The airline struggled to attract passengers and suspended its flights in 2006 and commenced offering charter flights.
In 2007, it began offering scheduled flights from Perth to Derby in Western Australia, as well as charter flights.
It has also formed partnerships with IndoJet Asia, Norfolk Air and Solomon Airlines and offers flights to Bali, Norfolk Islands and the Solomon Islands.
A series of carriers, mostly airlines operating in niche markets, have gone bankrupt in recent months as they grapple with rising fuel prices and challenging market conditions.
Four small US carriers, Aloha Airlines, Champion Air, ATA Airlines and Skybus Airlines, all ceased flying this year.
In the UK, Eos, which offered an all-business class service, went into bankruptcy protection last month.
Silverjet, the last business class-only airline flying from Britain, secured a lifeline last week from a Middle Eastern investor to keep it operating for at least this year.